Step 4 Financed by Equity and borrowed funds

1. This step shows the total capital required to run the business.
2. Working Capital + Fixed Capital  =  Equity and leverage
3. The shareholdings and the leverage ratio as per the market.
4. Leverage could be in the form of debentures, preferred shares or Long term bank loans
5. In Malaysia the ratio can be 1:1 for banks.  1:5 for some other institutions